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Gold ETF price performance: ICICI Pru Gold ETF

 

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ICICI Prudential Gold ETF logo

ICICI Prudential Gold ETF

136.32
26,380.80
133.15
138.71
78.59
158.00
18.60
158.00
Buy SIP

What are Gold ETFs?

Gold ETFs (Exchange Traded Funds) are investment products that track the price of physical gold and are traded on the stock exchange just like shares. When you buy a Gold ETF, you are investing in gold in electronic form, without needing to purchase, store, or insure physical gold yourself. Gold ETFs are SEBI regulated and transparent, making them a convenient way to add gold exposure to your portfolio.

Key Benefits of Gold ETF Investments

Purity

Each unit of a Gold ETF is backed by physical gold of 99.5% or higher purity* 

Regulated

Gold ETFs are regulated by SEBI and follow clear disclosure norms 

Security

Stored in your Demat account, no risk of theft/misplacement

Liquidity

Gold ETFs are easy to buy and sell on the stock exchange during trading hours

Savings

Zero making charges or GST on Gold ETFs unlike physical gold

Gold Investment: Cost & Tax Implication

Gold Bars Gold jewelry Gold ETFs
Base Gold Price Market price of physical gold Market price of physical gold Market linked price(derived from physical gold price)
Making Charges  Not applicable  8%–25% of gold value  Not applicable 
GST 3% of gold value  3% of gold value + 5% on making charges Not applicable*
Other Charges  Not applicable  Not applicable  Brokerage + statutory charges 
STCG Holding Period LTCG Holding Period
Physical Gold & Silver Up to 24 months Over 24 months
Digital Gold & Silver Up to 24 months Up to 24 months
Gold & Silver ETFs Up to 12 months Up to 24 months
Gold & Silver Mutual Funds Up to 24 months Up to 24 months

Long-Term Capital Gains (LTCG) taxed at flat rate of 12.5%

Short-Term Capital Gains (STCG) taxed as per applicable income slab

Frequently Asked Questions

To Invest in Gold ETF units, you only need enough capital to purchase a single unit. Each unit typically represents the value of approximately one gram of physical gold. This low entry barrier allows investors to build their portfolios incrementally over time without a large initial outlay.

A Gold ETF is a highly regulated financial instrument overseen by SEBI. Every unit is backed by physical gold of 99.5% purity held in secure vaults by professional custodians. While the market price of gold may fluctuate, the structural transparency makes it a secure way to hold the asset digitally.

Tracking error refers to any divergence between the returns of the Gold ETF and the actual price movement of physical gold. A lower tracking error is a key indicator of fund efficiency, as it suggests the ETF is successfully mirroring the real-time market price of the underlying metal.

You can Buy Gold ETF units or sell your existing holdings at any time during standard stock market trading hours. This provides investors with high liquidity and the flexibility to exit their positions instantly, which is often more convenient than selling physical gold.

Deciding to Invest in Gold ETF units is often a strategic move for long-term portfolio diversification. Because gold traditionally acts as a hedge against inflation and economic volatility, it serves as a prudent component of a balanced investment plan intended for long-term wealth preservation.

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